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ZEC $1,370 Europeans push EU to relax stablecoin reward curbs in MiCA review
A 50,000-person campaign seeks to loosen rules prohibiting interest payments on stablecoins as central banks argue for stricter restrictions.
Key takeaways
- Campaign scale unprecedented. The 50,000 letters exceeded ECB digital euro consultation responses by more than six times.
- Public-regulator divide widens. Over 126,000 supporters signed a broader petition while central banks pressed for extended bans on yield products.
What happened
A grassroots campaign has delivered over 50,000 emails to the European Commission calling for relaxed rules around stablecoin rewards. Advocacy group Stand With Crypto EU coordinated the effort as the Commission concluded its formal review consultation on MiCA, the EU's cryptocurrency rulebook. The campaigners asked the Commission to permit regulated stablecoin issuers and crypto platforms to offer incentives such as cashback, loyalty programs and fee discounts.
The effort gained broader traction through a separate petition that attracted more than 126,000 signatures. Supporters of this petition requested even more expansive changes, including permission to pass through yield on stablecoins backed by interest-bearing assets. Stand With Crypto EU noted that only EU citizens were permitted to participate in the email campaign.
Why it matters
Current MiCA rules classify single-currency stablecoins as electronic money and prohibit issuers and service providers from paying interest to holders. Campaigners argue this restriction places stablecoins at a competitive disadvantage against traditional bank deposits and other e-money products that can offer customer benefits. Stand With Crypto EU contends that euro-denominated stablecoins need competitive rewards to gain adoption and counter the dominance of dollar-denominated alternatives.
The campaign's scale dwarfs prior regulatory consultations. The 50,000 letters exceeded responses to the ECB's digital euro consultation by more than six times and far surpassed the 198 responses from the Commission's 2020 crypto rules consultation. This volume signals substantial grassroots interest in stablecoin policy among European citizens.
The effort directly opposes recommendations from Europe's central banking system. On September 22, the European System of Central Banks urged the Commission to expand MiCA's interest ban to cover lending, borrowing and staking arrangements. Central banks also proposed scrapping the requirement that stablecoin issuers hold at least 30 percent of reserves as bank deposits, citing concerns about profitability and potential liquidity mismatches.
What is still unclear
- Whether the Commission will officially count the 50,000 letters in its formal tally of MiCA review responses remains unclear.
Questions readers ask
What does MiCA prohibit regarding stablecoin rewards?
MiCA bans stablecoin issuers and crypto service providers from paying interest on stablecoins. Campaigners seek permission to offer cashback, loyalty benefits and fee reductions, arguing these incentives should not be treated the same as deposit interest.
How many people participated in the Stand With Crypto EU campaign?
Over 50,000 Europeans sent emails to the European Commission, while a separate petition attracted more than 126,000 supporters calling for broader stablecoin policy changes.
What do EU central banks want from the MiCA review?
The European System of Central Banks requested that MiCA's interest prohibition extend to lending, borrowing and staking arrangements.
How does this campaign compare to previous EU crypto consultations?
The 50,000 letters generated more than six times the responses received during the ECB's digital euro consultation and far exceeded the 198 responses from the Commission's 2020 crypto rules consultation.
